Joe's Garage, Inc., purchased a used vehicle lift, brake tester, and wheel aligning equipment for a lump-sum price of $16,000 from a bankrupt competitor.Appraised values were as follows: vehicle lift, $20,000; brake tester, $4,000; and wheel aligner, $6,000.
Required:
What cost should be recorded for the wheel aligner?

Question

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The Answer of Joe's Garage, Inc., purchased a used vehicle lift, brake tester, and wheel aligning equipment for a lump-sum price of $16,000 from a bankrupt competitor.Appraised values were as follows: vehicle lift, $20,000; brake tester, $4,000; and wheel aligner, $6,000.
Required:
What cost should be recorded for the wheel aligner?